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And you have nailed what I think is the biggest issue with Uber X and Lyft: the insurance.
Commercial vehicle insurance is expensive...I had it for a year, and it is ridiculous. Lyft could do what some courier folks do and get a blanket policy, then charge the drivers a small amount for it per paycheck. These part-timers don't understand that they are technically commercial vehicles, and if they get into an accident, their insurance company might not cover them. Then Lyft's policy would have to kick in...and I don't think Lyft wants to be responsible for accidents due to insurance confusion.
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